Some states have replaced local determination of millage through budgetary processes with a statewide limitation on property taxes (e.g., Proposition 13 in California). What are the implications for local financial management?

1. Local governments have increased their reliance on other sources of revenues, such as sales taxes and fee finance.
2. Constraints on local financing have required local governments to seek other ways of achieving efficiencies, such as through contracting and public/private partnerships.
3. There has not been a substantial effect on local government financial management
4. Both A and B